NH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | NH | Market Cap | 34,541 Cr. | Current Price | 1,688 ₹ | High / Low | 2,372 ₹ |
| Stock P/E | 69.9 | Book Value | 114 ₹ | Dividend Yield | 0.27 % | ROCE | 19.4 % |
| ROE | 21.0 % | Face Value | 10.0 ₹ | DMA 50 | 1,788 ₹ | DMA 200 | 1,781 ₹ |
| Chg in FII Hold | 0.61 % | Chg in DII Hold | 0.15 % | PAT Qtr | 109 Cr. | PAT Prev Qtr | 138 Cr. |
| RSI | 39.5 | MACD | -39.2 | Volume | 2,20,135 | Avg Vol 1Wk | 3,59,806 |
| Low price | 1,380 ₹ | High price | 2,372 ₹ | PEG Ratio | 1.51 | Debt to equity | 0.69 |
| 52w Index | 31.1 % | Qtr Profit Var | 37.1 % | EPS | 22.6 ₹ | Industry PE | 43.5 |
📉 Chart & Trend: NH is trading at ₹1,688, below both 50 DMA (₹1,788) and 200 DMA (₹1,781), confirming a bearish setup. RSI at 39.5 shows weak momentum, nearing oversold territory. MACD at -39.2 indicates strong negative crossover. Bollinger Bands suggest price is near the lower band, reflecting weakness with potential for a short-term rebound.
📊 Volume: Current volume (2.20 L) is lower than the 1-week average (3.59 L), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum remains negative. Support levels are seen at ₹1,650–₹1,670 and strong support at ₹1,380 (52-week low). Resistance lies at ₹1,780–₹1,800 (DMA cluster) and ₹1,950.
🎯 Entry Zone: ₹1,650–₹1,670 (risk-managed entry zone).
🚪 Exit Zone: ₹1,780–₹1,800 (profit-taking zone near resistance).
🔎 Trend Status: Bearish reversal. The stock is reversing from highs, struggling to regain momentum, and remains under pressure below key moving averages.
Positive
- Strong ROE (21.0%) and ROCE (19.4%) show efficient capital use.
- EPS at ₹22.6 reflects consistent earnings power.
- FII holding increased by 0.61% and DII holding by 0.15%, showing institutional confidence.
Limitation
- High P/E (69.9) compared to industry average (43.5) indicates overvaluation.
- Dividend yield of 0.27% is relatively low.
- Debt-to-equity ratio of 0.69 shows moderate leverage risk.
- Price trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- PAT declined from ₹138 Cr to ₹109 Cr, showing earnings pressure.
- Volume participation is weak compared to averages, limiting momentum strength.
Company Positive News
- Quarterly profit variation at 37.1% shows sequential improvement despite YoY decline.
- Institutional inflows (FII and DII) highlight confidence in long-term fundamentals.
Industry
- Industry PE at 43.5 is lower than NH’s P/E of 69.9, suggesting relative overvaluation.
- Healthcare sector benefits from rising demand but faces regulatory and cost pressures.
Conclusion
⚠️ NH is in a bearish reversal phase, trading below key moving averages with weak RSI and negative MACD. Fundamentals show strong efficiency and institutional support, but stretched valuations, declining profits, and weak volume participation limit upside. Short-term traders may consider entries near ₹1,650–₹1,670 with exits around ₹1,780–₹1,800, while long-term investors should wait for earnings stability and valuation correction before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay against other healthcare sector companies like Apollo Hospitals, Fortis, and Max Healthcare? That would highlight whether NH’s weakness is sector-driven or company-specific.